Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Eric Wells who wrote (101917)	4/22/2000 3:55:00 PM
From: re3	Read Replies (1) \| Respond to of 164685

from the newspaper listed below ! they are WARNING about maybe running out of cash... Corel warns of cash problems if merger fails The Globe and Mail Saturday, April 22, 2000 Corel Corp., which expects to be in the red for the next two quarters, has warned that it may run out of cash by the middle of July if its proposed merger with Inprise Corp. does not go ahead as planned. The caution is contained in a quarterly report filed this week with the U.S. Securities and Exchange Commission. "If the proposed merger with Inprise Corp. does not occur, other sources of financing are not secured and/or Corel's operating results do not improve, a cash deficiency may occur within the next three months," Corel warns. The report reveals that the Ottawa-based software maker is looking to cut costs and seek out alternative sources of financing in case the all-stock acquisition of Inprise fails to get shareholder approval. But Corel warns: "It is not clear whether changes to the cost structure or obtaining other sources of financing are feasible or would be sufficient to avoid the cash deficiency." Corel's chief technology officer Derek Burney said the warning in Corel's report is there to caution investors about any potential problems, however remote. "I wouldn't consider [cash problems] a high possibility. We're fully confident that the deal will go through," he said. Corel announced in early February that it would merge with Scotts Valley, Calif.-based Inprise, the biggest acquisition in its history. The deal would boost Corel's annual revenue by 72 per cent -- based on 1999 figures -- and bolster its bet on Linux, an upstart computer operating system that some investors see as a potential rival to Microsoft Windows. When the deal was announced in February, Corel's stock closed at $19.31 (U.S.) on the Nasdaq Stock Market, making the all-stock deal worth about $1.1-billion. By Thursday, Corel's share price had fallen to $7.94, making the deal worth about $460-million